Division of Box 3 Income for Rotterdam Residents
The division of box 3 income allows tax partners in Rotterdam to allocate the notional return on their assets in a tax-efficient way. This reduces the tax burden, especially following the box 3 reform from 2023, which introduced separate yield percentages for savings and investments. It is particularly relevant for Rotterdam residents with a second home in the city or investments in local real estate.
What does box 3 mean for you in Rotterdam?
Box 3 taxes savings and investments based on a notional return, not the actual return. Assets above the exemption threshold (€57,000 per person in 2024) are included, such as savings accounts, shares, holiday homes, or debts (e.g., student loans or mortgages on a second home). In Rotterdam, with its many expats and port workers, this often includes international investments.
From 2023, there are three brackets:
| Bracket (2024) | Assets | Savings portion (% yield) | Investment portion (% yield) |
|---|---|---|---|
| 1 | €0 - €57,000 | 0.36% | 6.04% |
| 2 | €57,001 - €200,000 | 0.36% | 6.04% |
| 3 | Above €200,000 | 1.44% | 6.17% |
Debts are deducted. The return is taxed at 32% (2024). Want to know more about the link with marriage and taxes? See our article on the subject. The Rotterdam District Court handles related family law cases.
When are you tax partners in Rotterdam?
You are tax partners if married, in a registered partnership, or cohabiting with a notarial deed and joint tax return (art. 1.6 Income Tax Act 2001). Rotterdam port workers or first-time homebuyers often qualify this way.
- Automatically upon marriage or partnership in the city.
- Cohabitants: declaration before 1 January and sharing half of income/expenses.
Only then can you divide box 3.
Legal basis for the division
Laid down in article 7.24 Income Tax Act 2001: with a joint tax return, you freely divide box 3 assets (including debts), regardless of legal ownership. Different percentages before 2023, but rules the same. The Tax Authorities check for reasonableness; extremes may lead to correction (art. 16 General Tax Act).
How to apply the division in Rotterdam
- Calculate total box 3 assets: Add up savings, investments, and debts of both partners.
- Choose allocation key: Assign to fictional portfolios – everything to one is allowed.
- Calculate yield per bracket: Using the Tax Authorities' tool.
- Enter in tax return: Select 'box 3 division' online.
Example 1 Rotterdam: Ahmed (port worker) has €100,000 in savings, Fatima €100,000 in Rotterdam real estate investments. Without division, higher tax for Ahmed. With division: savings to him, investments to her – up to €500 savings.
Example 2: After divorce at Rotterdam District Court (see divorce and taxes). Adjust provisional assessment.
Rights and obligations
Rights:
- Free choice for lowest tax.
- Refund if error (art. 22 Income Tax Act).
- Divide fairly and realistically.
- Prove ownership with documents.
- Upon divorce: revert to actual assets.
FAQs for Rotterdam Residents
Can I change after filing?
Yes, until 1 May. After that, request ex officio (5 years, art. 16 General Tax Act) if circumstances change.
Cohabiting without contract?
No, tax partnership requires joint return and shared burdens.
Impact on benefits?
No, benefits (rent/care via Municipality of Rotterdam) look at actual assets (art. 2.27 Income Tax Act).
Upon death?
Applies until date of death; heirs follow actual assets.
Tips specific to Rotterdam
- Calculator: belastingdienst.nl/simulatie-box-3 for optimal split.
- Document: Bank statements as proof.
- Asset planning: Opt for limited community of property via notary in Rotterdam.
- Expert help: Free at Juridisch Loket Rotterdam or tax advisor for complex cases like port companies.
- Check annually: With fluctuating assets due to Rotterdam's economy.
In family law: Marital conditions separate ownership, but tax division is possible. For advice: Juridisch Loket Rotterdam or our specialists.
Article ~1050 words, current 2024. Check Tax Authorities for latest changes.